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The war in the Middle East has sent oil and gas prices soaring – and Britain remains deeply exposed to global energy markets. If the shocks persist they will feed directly into household bills, business costs and inflation. On Tuesday, the Office for Budget Responsibility released projections that were finalised before the US-Israeli strikes began. Rachel Reeves was right to warn that household bills might rise. But she gave no clue as to whether her policy would be flexible enough to respond if they did.
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